The World Bank Accelerated Water And Sanitation Project In Selected Areas (P504257) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 05/20/2024 | Report No: ESRSC04301 Feb 07, 2025 Page 1 of 8 The World Bank Accelerated Water And Sanitation Project In Selected Areas (P504257) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P504257 Investment Project Financing (IPF) AWSPSA 2025 Operation Name Accelerated Water and Sanitation Project in Selected Areas Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Philippines Philippines EAST ASIA AND PACIFIC Water Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Department of Department of Public Works and 17-Mar-2025 27-Jun-2025 Finance Highways, Department of Interior and Local Government Estimated Concept Total Project Cost Public Disclosure Review Date 15-May-2024 252,417,323.00 Proposed Development Objective To increase access to safely managed water supply and sanitation services and improve the performance of water service providers in selected areas. B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities The Project will provide investment and capacity-building support to increase access to safe water supply, sanitation, and hygiene (WASH) services and improve operational efficiency and quality of selected water and sanitation service providers. The project will support local government units (LGUs) and their service providers in the planning, preparation, and implementation of their WASH programs and projects. Capacity building will be provided to promote efficient and quality delivery of services through creation of autonomous local water enterprises, service level and tariff setting, and technical trainings such as on network and commercial management. The project will prioritize areas that Feb 07, 2025 Page 2 of 8 The World Bank Accelerated Water And Sanitation Project In Selected Areas (P504257) are poor, lagging in WSS services, have high incidence of waterborne diseases, face high water security risk due to climate change and/or projects which have inter-jurisdictional externalities/economies of scale. Investment items to be financed include the rehabilitation, upgrading, construction and expansion of WASH facilities, such as: water supply sources including bulk water supply; water transmission and distribution networks including household connections; fecal sludge management; household sanitation facilities; and WASH facilities in public places like schools and health centers. The project will also demonstrate the implementation of some policy reforms that are part of an ongoing Development Policy Loan. These reforms will support the expected transition of the sector from its current fragmented state to a more structured organization, with clear mandates and integration of national and local government plans and programs. The project will feature funding and financing mechanisms that will feature partnerships between national and local governments and ultimately encourage private sector participation. Other sub-projects include project management and preparation of feasibility studies for the next priority areas. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The Project will be implemented in four provinces located in the regions of Visayas (Bohol Province) and Mindanao (Provinces of Surigao, Zamboanga and Lanao del Norte). The Project will be socially significant as it increases water and sanitation services the cumulative effect of which leads to better human and economic development outcomes. Through the Project's prioritization criteria, target beneficiaries will be from poorer municipalities, areas highly impacted by climate-change, and those with existing feasibility studies. The Project will also support national priority areas for tourism (Bohol and Siargao) and peace and development zones. While the Philippines is not categorized as an FCV country, sub-regional conflict is present especially in some areas in Mindanao. Surigao, Zamboanga and Lanao del Public Disclosure Norte have conflict-affectations with presence of the New People's Army of the Communist Party of the Philippines (CPP-NPA) and some elements of the Moro Islamic Liberation Front and Moro National Liberation Front that signed a peace agreement with the government. Proposed project provinces have several natural features with ecological importance. For example, Bohol is renowned for its coral reefs and unique geological formations, such as the Chocolate Hills in Carmen, featuring over 1,200 symmetrical mounds that turn cocoa-brown in the dry season. The province is also home to the Tarsier sanctuary, a large forest area dedicated to protecting the endangered tarsiers, small nocturnal primates; Siargao: known as the surfing capital of the Philippines, it boasts long sandy beaches, natural caves, and impressive rock formations; Zamboanga del Norte features diverse ecosystems, including tropical forests, coastal areas, and marine habitats, with multiple protected areas; Lanao del Norte features forested areas like the Lanao del Sur-Misamis Occidental Moist Forests ecoregion and is intersected by rivers, including the Pulangi River Basin. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts DPWH has substantial knowledge and experience of the World Bank's ESF. Its track record include implementing World Bank-financed projects, such as the Metro Manila Flood Management Project (P153814) and the Philippines Seismic Risk Reduction and Resilience Project (P171419), while adhering to safeguards policies. Currently, DPWH is also in the process of preparing the Mindanao Transport Connectivity Improvement Project (P177017). The department has demonstrated its expertise and capability to manage site-specific risks and impacts, as evidenced by the establishment of the Environment and Social Safeguards Department (ESSD). The ESSD ensures compliance with safeguards requirements through diligent implementation, review, and reporting processes. It operates in accordance with a Feb 07, 2025 Page 3 of 8 The World Bank Accelerated Water And Sanitation Project In Selected Areas (P504257) comprehensive Social and Environment Management System (SEMS), which provides the basis for understanding and applying safeguards principles and executing the Environmental and Social Management Framework (ESMF). DILG's E&S capacity is low given that the agency doesn't have any experience implementing World Bank financed projects. However, for this project, the role and activities to be undertaken by the DILG is limited to capacity building of local government units (LGU's) including support for policy making related to water supply and sanitation. Given this, there is a need for the project to provide DILG with the necessary ESF capacity development activities which may include ESF orientation and deep dive into some of the relevant standards. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial A.1 Environmental Risk Rating Substantial The project encompasses activities such as developing water sources, upgrading/constructing water transmission and distribution systems, and sanitation facilities, such as septage treatment, and WASH in schools and public areas. It aims to improve the quality of life for communities and stimulate growth, particularly in the tourism sector. Project investments would involve civil works such as construction of intake wells, laying of cross-country transmission mains, distribution network, septage treatment facilities, etc. While the operational phase of the project would have several benefits, the expected key environmental impacts and risks during project construction and operation include: (a) possible impacts on natural habitats in case of new surface source development or land subsidence or saline Public Disclosure intrusions due to over development of groundwater; (b) competing water demand and riparian issues; (c) source contamination due to construction activities affecting health and safety of downstream riparians; (d) possible need of forest diversion and associated impacts on bio-diversity for laying transmission mains or construction of storage reservoirs at elevation; (e) OHS risks on community during construction of distribution network; (e) air/water/soil pollution due to the civil works including debris disposal; and (f) impacts due to sighting of septage treatment facilities and operation stage impacts such as odor and quality of effluents. Similar civil works have been carried out in the past in provinces and most of the impacts and the mitigation measures are known and are generally integrated into the construction contracts. In addition, DPWH has relevant capacity to address such impacts through impact mitigation/ management provisions in the contracts. However, the civil works in or around the protected areas and/or near pristine water sources could cause significant impacts. Considering this, the environmental risk is rated as “Substantial” at PCN. Substantial A.2 Social Risk Rating The project will have significant positive impact for poor and vulnerable households and communities by providing access to affordable and clean water supply and sanitation facilities. Increased access to water would positively impact women and girls increasing time for productive activities, providing safe and sanitary sanitation facilities. Given the nature and context of the project which is water provision and civil works, key identified risks include (i) land acquisition and road right of way for the siting of the facilities such as bulk water supply reservoirs, treatment plant and intake tanks among others, (ii) community health and safety due to the potential increase of waste water, water contamination and disruption of services due to the civil works, air/dust pollution and traffic-related risks due to presence of heavy equipment and excavation works due to pipe laying, (iii) equity issues in the use of water Feb 07, 2025 Page 4 of 8 The World Bank Accelerated Water And Sanitation Project In Selected Areas (P504257) resources or restrictions on benefitting from ecosystem services especially for communities where the water is sourced, and (iv) Potential affectation of IP communities in Zamboanga Sibugay and Lanao del Norte areas. Labor influx and its impact towards workers and communities are not expected as per DPWH experience, between 40-60 workers per site is needed with 80 percent of the laborers sourced from the community or locality. Workers camp will be set-up hosting 5-10 workers. Occupational health and safety issues include security of workers, exposure to natural hazards such as floods and extreme weather events (heavy rainfall and extreme heat). Inclusion of vulnerable and marginalized groups is crucial, the Project will need to take into consideration universal access principles in the design of WASH facilities to cater to the specific needs of persons with limited mobility and gender considerations. Capacity building activities will need to ensure that women and IPs are provided spaces and opportunities to participate and lead. B. Relevance of Standards and Policies at Concept Stage B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant By appraisal, the Borrower will prepare the E&S Commitment Plan (ESCP), and E&S Management Framework (ESMF). As the sub-projects details only would be known during preparation, the ESMF is chosen to provide E&S screening criteria, and guidance for site-specific ESIAs for major interventions. The ESMF will include standard ESMPs, exclusion list, Environmental Codes of Practice (ECOPs) and nature based solutions to mitigate the impacts; and Community Health and Safety Plans will be included where necessary. Associated facilities e.g. approach roads will be recognized Public Disclosure for assessment under ESMF. When relevant, for sub projects implemented in the first year, site-specific E&S instruments shall be prepared before appraisal. Institutional arrangements will have to be in place to manage bulk water supply services, ensuring sustainability of water source's supply and meet the threshold to in order to balance with other ecosystem services being provided. ESS10 - Stakeholder Engagement and Information Disclosure Relevant ESS 10 is relevant. Affected parties include direct communities where the water supply is sourced, adjacent communities (including downstream) and private companies benefitting from ecosystem services, local government units and their water utilities offices, and households and private businesses that will be affected by the civil works. Vulnerable and disadvantaged groups comprise children, persons with disabilities (PWDs), and IPs. A stakeholder analysis will be prepared to identify stakeholders’ project-related needs and interests. Meaningful engagement with affected parties and stakeholders will be undertaken including understanding of the political economy and dynamics to ensure that risks and impacts are identified, avoided, and or mitigated. A project-wide SEP will be developed before the appraisal that will outline activities on the conduct of public dialogues, and will include a grievance redress mechanism (GRM) accessible by the public. ESS2 - Labor and Working Conditions Relevant ESS 2 is relevant. According to DPWH the Project will employ between 40-60 laborers, 80-85 percent of this will be sourced from local communities. Thus, no labor influx is expected, however, a small workers camp ("Bunk houses") will still be needed to accommodate the remaining 15 percent of skilled workers. It is anticipated that majority will Feb 07, 2025 Page 5 of 8 The World Bank Accelerated Water And Sanitation Project In Selected Areas (P504257) fall under contracted workers, some direct workers, and some primary supply workers. Child labor is a potential risk for this project especially in rural communities and can be used as haulers of construction materials. The Labor Management Procedure shall be prepared before the project appraisal. The LMP will outline the policies and procedures on OHS, labor GRM, working conditions and prevention of child labor, forced labor, SEAH/SH and GBV and security management plan, for project sites located conflict-affected areas and when assessed as necessary. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant ESS3 is relevant as the project may generate significant risks associated with the civil works that generates noise, dust and emissions. The ESMF will cover pollution prevention, and waste management with screening addressing the risks on pollutant release, waste generation, ACM, community impact, and measures for improving efficient consumption of energy, water and raw materials, as well as other resources. Potential restrictions to key ecosystem services like access to water for livelihood and cultural aspects is also possible. Mitigations will be proposed during the assessment, the ESIA/ESMP will evaluate civil works' risks and mitigation in line with ESS3 requirements, including raw materials, water use, air pollution, hazardous materials, and waste. Depending on proposed investments and treatment capacity, the significance and need for GHG accounting will be considered. The technical design will incorporate good practices to reduce or mitigate the emission of greenhouse gases. ESS4 - Community Health and Safety Relevant ESS 4 is relevant. Civil works involving water systems and distribution lines/pipes pose significant health and safety risks to communities. Foremost to this is the disruption of water supply and possible contamination of water brought Public Disclosure about by the civil works. construction and excavation activities also present safety risks to communities including traffic accidents, air/noise/water pollution. Increasing water access also translates to an increase of waste water and sanitation issues demanding safe sewage and septage management. A traffic management plan will be included in the ESMF. Moderate GBV and SEAH/SH risks stemming from presence of male workers in rural and isolated communities and select-schools. GBV and SEA/SH orientation among workers shall be included in the LMP, while community-level mechanisms shall be tapped by the project to mitigate this risk. The project shall apply universal access and design principles, in a manner financially and technically feasible. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant ESS 5 is relevant. Land acquisition is envisaged to be undertaken by local government units (LGUs e.g. municipal and or provincial). While some of these lands are owned by the LGUs, informal settlers and or holder's of temporary use of rights to the land may be affected. In addition, road right of way acquisition is also possible to serve as approach roads for the water facilities. Pipe laying works may also impact households and business establishment including vendors. With this, the Borrower will prepare a site specific Resettlement Action Plan in cooperation with concerned LGUs/agencies to be submitted before the project appraisal. the RAP will cover land acquisition, resettlement and economic displacement and a GRM. If temporary displacement of street vendors is unavoidable, the requirement under ESS5 is to consult the affected parties and come up with alternative locations or livelihood support. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Feb 07, 2025 Page 6 of 8 The World Bank Accelerated Water And Sanitation Project In Selected Areas (P504257) The proposed project provinces have natural features of ecological significance. Given that certain civil works would be located within the vegetated watersheds, it's anticipated that could have have considerable impacts on both terrestrial and aquatic ecosystems. IBAT screening reflects about 23 protected areas (PA) and 9 key biodiversity areas (KBA) of terrestrial ecology in the project area. The application of ESS6 is relevant for the project to facilitate integration of exclusion criteria which will be included in the ESMF. Based on the information provided by different LGUs/provinces, the initial E&S screening at PCN indicates that none of the proposed project areas are in PAs, requiring Protected Area Management Board (PAMB) clearance. The preparation activities need to confirm this, especially for aligning water transmission mains. Given this, the bio-diversity aspects and the associated impacts will be taken up as part of the E&S Screening and ESIAs for specific investments. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Local Communities As per information gathered as of this stage, IP groups are located in some municipalities in Zamboanga del Norte and Sur (Subanen) with ancestral domain claims, the Higaonon tribe is also present in Lanao del Norte. Once the Project site/locations are finalized, ESS 7 shall be reviewed and assessed. When relevant, an IP Participation Plan shall be prepared before appraisal. IP communities shall also be consulted, and strategies for their meaningful participation shall be outlined in the SEP. Equity issues over access to water resources shall also be considered in the Project's design and strategy ensuring that IP communities have continuous access to the different ecosystem services derived from the water resources. Bulk water sourced from ancestral domain lands shall ensure IP participation in the management and preservation of the said water resource. Public Disclosure ESS8 - Cultural Heritage Relevant This standard is relevant. The project could adversely impact tangible cultural heritage as the civil works may involve substantial soil excavation necessitating preparation of chance-find procedures to be integrated into the ESMF and the ECOP. The PCN stage initial E&S Screening indicates that no cultural heritage will be adversely affected by the project. A review of this standard and requirements will be conducted when IP communities are identified to be part of the affected-parties in order to assess any potential impact on intangible cultural heritage. ESS9 - Financial Intermediaries Not Currently Relevant Not relevant as FIs are not involved in this project B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features Use of Borrower Framework No Feb 07, 2025 Page 7 of 8 The World Bank Accelerated Water And Sanitation Project In Selected Areas (P504257) Use of Common Approach No C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? Before Appraisal: -Preparation of the ESCP, ESMF (and ESIA and RAP as may be applicable for relevant sub-projects), LMP, RAP and SEP -Conduct of public stakeholder consultations -Disclosure of ESCP, ESMF, RAP, LMP and SEP Depending on the final project sites: IPP Plan III. CONTACT POINT World Bank Task Team Leader: Ma Fiorella Delos Reyes Fabella Title: Senior Water Supply and Sanitation Specialist Public Disclosure Email: mfabella@worldbank.org IV. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Ma Fiorella Delos Reyes Fabella ADM Environmental Specialist: Harinath Sesha Appalarajugari ADM Social Specialist: Paul Tudtud Adolfo Feb 07, 2025 Page 8 of 8